Despite concerns surrounding the still-prevailing illicit markets in the wake of newly regulated adult-use cannabis, it appears that many users are still turning to the legal industry—at least when it comes to Canada.
A new national survey published by government agency Statistics Canada provides relevant insight on consumer habits in Canada, finding that just over seven out of 10 (71.7%) of past-year adult cannabis users exclusively bought cannabis from legal sources.
The findings are based on data from a self-reported survey of 2,251 adults aged 18 to 24 years old and 5,185 adults over the age of 25.
Looking specifically at the legal market, the main reasons reported for buying from a regulated and legal source were product safety (38%), convenience (16.9%) and a desire to follow the law (12.9%).
In addition to examining consumer patterns within the legal market, the survey also looked at broader cannabis use trends.
The data found that younger Canadians, those 44 and under, are more than twice as likely to use cannabis than older residents. Last year, more than one-third of adults 18 to 24 (38.4%) and 25 to 44 (34.5%) reported past-year cannabis use, while just 15.5% of adults over the age of 45 reported the same.
The trend prevails when use frequency increases, as 8.7% of adults 18-24 and 10.3% of those 25-44 reported daily or almost daily use in the previous 12 months. Conversely, just 4.8% of adults over the age of 45 reported the same. Among that age group, men (6%) were more likely to partake in daily cannabis use than women (3.6%), whereas no gender differences were noted in younger age groups.
Last year’s 2022 survey also showed that past-year use as a whole appears to be increasing, with 61% reporting cannabis use over the past 12 months compared to 53% from 2021.
Across all age groups, flower (62.1%) and cannabis edibles (57.1%) were the most commonly used product types. A number of products, including vape pens and cartridges, cannabis concentrates, infused beverages, dried flower, and edibles, were more commonly used among young consumers, while cannabis topicals and oral cannabis oils were more popular among older consumers.
Researchers suggest that some of these use trends may be due to the increased potency of certain products over others, namely that younger consumers may be more familiar with or comfortable trying those products that tend to be higher in THC.
For those consumers over 25, men were more likely (70.2%) to use dried flower than women (48.4%), while edible products were more commonly used among women (62.7%) than men (51.9%), though these gender differences were not noted in consumers 18-24.
The findings point to the success of Canada’s legal cannabis market, with the majority of consumers opting to purchase from regulated sources.
Other recent data similarly reflects the upward trajectory of the legal Canadian cannabis market, with a March 2024 report from Statistics Canada showing a 15.8% year-over-year increase from 2022 to 2023 in recreational cannabis sales throughout the country totaling $4.7 billion.
Though, that’s not to say that Canada’s illicit market is dead. While consumers are steadily turning to the regulated market, Brad Poulos, an entrepreneurship professor at Toronto Metropolitan University who studies the Canadian cannabis industry, recently told MJBizDaily he estimates that the illicit market still controls roughly 40% of cannabis sales in the country.
Though that gap has narrowed significantly over time.
Looking back at Canada’s first year of legal sales, the country recorded just over $1 billion in sales, compared to an estimated $5-7 billion from the illicit market during the same time period. At the time, high prices and a lack of shops evenly concentrated throughout the country’s provinces were cited as primary reasons for the slow growth.
